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HL good deal for smaller SIPP?

Financial Advice | General Helpful? 15

Asked by Dasher47, submitted 05 February 2014.

Open Quote I have a stocks and shares ISA (including Investment Trusts) with Hargreaves Lansdowne as well as a SIPP, which I will take into flexible drawdown. I am a small to medium investor and was going to transfer both of these to another platform in view of the impending new charges and the fact that HL has been highlighted as an expensive service anyway.

However, following todays' email that HL has changed the new policy on investment trust charges I compared fees and charges between HL, Alliance, Interactive Investor and Charles Stanley and HL for my circumstances seems to be competitive. What am I missing, if anything?
End Quote

Answered by Justin on 08 February 2014

Hargreaves Lansdown can be competitive for smaller pensions, typically those less than around £50,000, if you hold a mix of funds and shares (in which I include investment trusts and exchange traded funds). This is because the fixed annual fee platforms tend to only become cheaper for larger pensions, depending on how often you trade. And some of the cheaper percentage fee based platforms levy an extra fixed fee for their SIPPs.

However, Bestinvest would likely be around 0.15% a year cheaper than HL, depending on how much is held in shares. And Halifax owned iWeb can be a good deal on around £40-50,000, with an annual SIPP fee of £90 and £5 per fund or share trade. However, the SIPP fee rises to £180 above £50,000 and iWeb has a pretty awful website.

As for the ISA you can likely get a cheaper deal than HL via iWeb. After a one-off £25 fee you just pay £5 per trade (new pricing to be introduced 31 March 2014). And AJ Bell Youinvest might be worth a look with a 0.20% annual fee for funds (but not shares) with £4.95 fund and £9.95 share dealing fees.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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